until Israel withdrew from occupied Arab territory. The next day, Saudi Arabia, the
world’s foremost oil exporter, announced its intention to cut production by 10 per-
cent and to halt all shipments to the United States. Other Arab countries quickly
announced a similar embargo of the United States and the Netherlands because of
their support for Israel. The oil producers gradually increased their overall production
but retained the embargo against the United States and the Netherlands until mid-
March 1974. Although the embargo lasted just five months, it unleashed the enor-
mous economic consequences of quadrupling world oil prices, exacerbating rampant
inflation, and causing a worldwide recession that lasted into 1975.
Following is the text of UN Security Council Resolution 338, adopted on October
22, 1973.DOCUMENT
UN Security Council Resolution
338 (1973)
OCTOBER22, 1973The Security Council,
- Calls uponall parties to present fighting to cease all firing and terminate all mili-
tary activity immediately, no later than 12 hours after the moment of the adoption of
this decision, in the positions after the moment of the adoption of this decision, in
the positions they now occupy;
2. Calls uponall parties concerned to start immediately after the cease-fire the
implementation of Security Council Resolution 242 (1967) in all of its parts;
3. Decidesthat, immediately and concurrently with the cease-fire, negotiations start
between the parties concerned under appropriate auspices aimed at establishing a just
and durable peace in the Middle East.
SOURCE: United Nations Information System on the Question of Palestine, http://domino.un.org/UNISPAL.
NSF/d744b47860e5c97e85256c40005d01d6/7fb7c26fcbe80a31852560c50065f878!OpenDocument.ARABS AND ISRAELIS 115